Liberty Holdings is selling the technology platform which supports its short-term insurance business to Standard Bank, for R145 million.
Liberty said it developed a short-term insurance technology solution which enables its financial advisers to offer a more comprehensive product offering that supports clients on their life journey.
These short-term products are underwritten by Standard Insurance, a wholly owned subsidiary of Standard Bank Group.
“The solution leverages Liberty Holdings’ extensive distribution network and allows customers to pro-actively manage their short-term risk through the use of an enhanced digital capability,” it said in a statement.
The transaction provides Liberty Holdings with the opportunity to reduce future capital requirements and de-risk its business, the group said by way of rationale for the transaction.
“Notwithstanding the sale of the technology platform to SBSA, the Transaction ensures Liberty Holdings’ short-term insurance offering will still be available to its financial advisers and network in the SA market to enhance the comprehensive product offering available to customers.”
The proceeds from the disposal will be used to support Liberty Holdings’ existing business and the delivery of various initiatives relating to its refreshed strategy, it said.
Liberty said that for the financial period ended 31 December 2018, the recorded loss attributable to the business from costs incurred in establishing the technology platform was R51 million and the capitalised expenditure incurred up to 31 December 2018 was R94 million.
The effective date of the transaction is 2 January 2019.